Paterson will "end legislators' vacations" on Aug. 19

In a televised speech a few minutes ago, Gov. David Paterson announced that he would be calling back the legislature on Tuesday, August 19 for an “emergency economic session.” (He said August 29 in the speech, but the governor’s press office confirmed it would be on the 19th).

The session will address additional cuts to state spending, property tax relief, home heating relief, public/private partnerships to sell public assets, among other issues.

He outlined the challenges that the state faces with decreasing revenue and rising costs.

When he came into office in March, this year’s projected deficit was $5 billion. Now, the estimate is $6.4 billion. That is $1.4 billion higher in only four months.

The combined budget deficit estimate for the next three years has gone up to $26.2 billion from $21.5 billion, a 22% increase in less than 90 days.

Last year, the top 16 banks paid $173 million in taxes last year; this year, its $5 million, a 97% decrease.

Paterson: “The fact is, we confront harsh times. Let me be honest. This situation will get worse before it gets better.

“My message to the legislature: next year’s budget process starts now. New York residents are already making tough choices…New Yorkers are prioritizing spending each day…now your government is going to follow your lead. We are going to end legislators’ vacations and bring them back to Albany to reprioritize New York state’s finances”

“Now government will do what New Yorkers do when when their incomes have fallen. We will cut spending. But I can’t do it alone,” said Paterson. He asked for help from state leaders in the public and private sector, labor, as well as the federal government to help manage the crisis.